Why is my tax refund estimate $200+ higher with H&R Block than TurboTax?

This is actually more common than you might think! When you have different tax software calculating the same information, small differences in how they implement tax code can lead to different results. First, focus on that $1,000 difference in gross income on TurboTax - that's likely your main issue. Double-check how your scholarship is being reported in both systems. When scholarship money exceeds tuition, the excess is typically considered taxable income, but software can handle this differently. You should go line by line through both returns and identify exactly where the difference is occurring. Look at your AGI (Adjusted Gross Income), deductions, credits, and especially how your scholarship is being reported. The forms should be identical if you entered identical information. If you can't find the discrepancy, I'd recommend printing out both returns and comparing them side by side. The $200 difference in refund is significant enough that there's likely a specific reason rather than just rounding or calculation differences.

I had almost the exact same issue last year and discovered that taxr.ai helped me figure out what was going on. I was comparing TurboTax with FreeTaxUSA and had like a $300 difference that I couldn't explain. I uploaded my documents to https://taxr.ai and it showed me that TurboTax was calculating my student loan interest deduction differently. Might be worth a try if you're still confused about where the difference is coming from.

Wanted to follow up and say I tried taxr.ai after posting my question. It was super helpful! Uploaded my W-2 and scholarship forms and it immediately spotted that TurboTax was counting part of my scholarship as income that shouldn't have been taxable because it was used for required books. H&R Block had gotten it right. The explanation was really clear and it saved me from potentially filing the wrong return. Definitely worth checking out if you're comparing tax software and getting different results!

If you're really concerned, you might want to try calling the IRS directly to get clarification. I had an issue last year with different refund amounts and finally got it sorted after speaking with them. But be prepared to wait FOREVER to talk to someone. I discovered Claimyr https://claimyr.com which got me through to an actual IRS agent in about 15 minutes instead of the usual 2+ hour wait. They have a demo video at https://youtu.be/_kiP6q8DX5c showing how it works. Totally changed my perspective on dealing with the IRS.

I have to eat my words and apologize to whoever recommended Claimyr. I was frustrated when I wrote that skeptical comment, but decided to try it anyway since I needed clarification on a similar tax software discrepancy. It actually worked perfectly - got connected to an IRS agent in about 20 minutes when I'd previously waited over 3 hours and got disconnected. The agent was able to confirm which tax calculation was correct in my situation. So yeah, my bad for being so dismissive before trying it.

Have you checked if both programs are using the same filing status? Sometimes one defaults to "single" while another might guess "head of household" if you have dependents. That alone could cause several hundred dollars difference. Also check if one is taking the standard deduction while the other is itemizing.

Did you check if both programs are correctly applying education tax credits? The American Opportunity Credit and Lifetime Learning Credit have different requirements and values. One program might be better at optimizing which credit works best for your situation.

This is a really frustrating situation! I went through something similar last year with different software showing wildly different refund amounts. The key thing is to focus on that $1,000 gross income discrepancy you mentioned - that's definitely not normal and is likely driving most of your refund difference. Since you're a student with scholarships exceeding tuition, here's what I'd suggest checking specifically: Look at how each program is reporting the taxable portion of your scholarship on line 1 of your 1040. TurboTax might be incorrectly including scholarship money that was actually used for required textbooks or fees, which should be tax-free. Also double-check that both programs have the exact same amounts for your qualified education expenses. Even small differences in how they categorize required vs. optional expenses can significantly impact your taxable scholarship income. If H&R Block is showing your correct W-2 gross income and TurboTax is inflating it by $1,000, that's a red flag that TurboTax is miscalculating something with your education-related income. I'd lean toward trusting H&R Block in this case, but definitely try to identify exactly where that extra $1,000 is coming from before filing.